New power firms making N23bn monthly, says FG
The new electricity distribution companies are generating between 20 and 23 billion naira monthly based on current revenue profile, Chairman, Presidential Task Force on Power, Engr. Reynolds Beks Dagogo-Jack, has said.
Speaking yesterday at the Chief Executives Roundtable meeting on sectoral linkage opportunities organised by the Nigerian Content Development and Monitoring Board in Abuja, Dagogo-Jack said the about N380bn spent on paying the severance packages of ex-PHCN workers may just be 16 months cost based on the revenue invoice.
“As I speak to you, our monthly revenue profile or invoice profile in the market at 4,000 mw is in the region of 20 - 23 billion Naira, which means what we paid Labour can be seen as 16 months cost.”
He said the post privitisation period is very critical and people should exercise patience before they start reaping the benefits.
“A lot of people argued that the moment privitisation takes place; there should be 24-hour electricity supply. That is not true and it’s good that we manage our expectations, because looking at the political will that took us to the point in transforming the market from public ownership to private ownership, we need an equal level of political will to stabilize the private market.”
He said this stage is the most vulnerable stage of privatised market, and “if we didn’t have the political will to sustain the maturity of that market in this vulnerable stage, it can fall in another direction.”
According to him, from all the projections and computations, “Nigeria needs about 20,000mw to be in the 20 big economies by the year 2020 and to achieve that, there should be huge investments across the value chain, in generation, transmission and gas, and we are looking at the region of $20 billion between now and then.”
Earlier, the Executive Secretary of the NCDMB, Engineer Ernest Nwapa, said such interaction is very important in order to share success stories from all the stakeholders concerned.
He said the forum gave them opportunities to discuss mechanisms for achieving structured inter-agency collaboration to maximize in-country value creation through optimization of capacities developed by the various agencies over the last four years since the NCDMB Act was enacted.